TRRA is going public next week, led by Goldman Sachs...the reason is to A) raise cash and B) create a currency(stock) with which to ACQUIRE their way into becoming the largest international Hispanic portal site (and ISP).....
TRRA might acquire PASA because PASA is one of 2 public American/Hispanic portals sites. PASA has 120,000 registered users and at 100 million dollars for the company that is something in the neighborhood of 1200$ per user....AOL was paying upwards of 3000$ for users when they were acquiring....
Secondly, they would buy PASA because the CEO of TRRA said THEY WANT TO BUY THEIR WAY INTO NORTH AMERICA ..... black and white, plain as day...see link cbs.marketwatch.com they can pay 2 billion for Starmedia, or 200 million for PASA.....I dont think they have 2 billion $......
Third, users at PASA are growing 128% quarterly, and PASA has some major partnerships already and a heavy advertising campaign going and a VERY recognizable name.
And lastly, wether TRRA buys PASA or not, the Hispanic market is the largest ethnic group in America and is a very untapped market with only 2 portal players in it. First to market is a very important aspect of the internet, as proven by Amazon.com. They spent tons of money to establish brand name, and in the beginning many said this was a bankrupt company being run by a lunatic who would never make any money....well, so far they havn't made any money, but the stock did run to a split adjusted 600 from a low of 15, based on their first to market advantage and spending on advertising. Pasa is following the same business plan. The Hispanic market is huge and untapped and one day you will see PASA post registered users in the millions and then you will see tremendous interest in the stock....of course it will be 100+ at that point (IMHO) and a bit late to get in on the game. I would rather be in now and wait a few months more....
Actually, I hope they do not get bought out....that would mean I will never get to see the full potential of my investment...kinda would feel robbed? ya know?............;^)
P.S. PASA has a heavy hitter board of directors including Bill Seidman, chief economist at CNBC. Got to quepasa.com and check 'investor relations' to see management.
Also, worth noting is that they have contracted Gloria Estefan as a promotional face for the company, and she will host a live chat on the site next week....she may show up in commercials soon, and it doesn't hurt that she has a movie (Music of the Heart) currently in the theaters.
PASA has no debt and about 30 million in cash. The site is improving daily. The Hispanic sector of America is quickly becoming the most targeted ethnic sector by the internet. IMHO, Quepasa.com (PASA) is a very cheap way to participate in this trend.
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